BTechibtechi.in
Loading Loading
Free IIT Madras BS notes, PYQs and mock tests at btechi.in

SPG · Personal finance basics

BSGN3001 · 6 questions · 6 marks · 3 papers

Answer key

Indian Institute of Technology Madras

BS Degree Programme · Examination & Study Paper

BSGN3001 · Strategies for Professional Growth

Personal finance basics

Official Paper

Examination Instructions & Guidelines

Solve on notebook/paper first before checking solutions.
MCQ: Exactly 1 option is correct. Negative marking applies.
Scientific calculator allowed for all calculations.
Official answer key is sealed at the end of this sheet.

End Term · 31 Aug 2025 (FN)End Term

Q1MCQ1 Mark·Choose one option
Key ↓
What happens to bond prices when interest rates rise, and why?
1. ABond prices rise because older bonds become more attractive.
2. BBond prices fall because newer bonds offer higher interest than existing ones.
3. CBond prices stay the same because interest rate changes don’t affect them.
4. DBond prices rise because demand for bonds increases with interest rates.

End Term · 31 Aug 2025 (AN)End Term

Q2MCQ1 Mark·Choose one option
Key ↓
Imagine your savings account earns 1% interest per year, while the inflation rate is 2% per year. After one year, compared to today, ceteris paribus, the money in your account will be able to buy:
1. AMore than today
2. BExactly the same as today
3. CLess than today
4. DCannot be determined

Quiz 2 · 3 Aug 2025 (AN)Quiz 2

Useful Reference Data for this Paper
[Content Redacted – Not for Distribution]
*This content is the property of its respective authors, copyright holders and publishers.
Q3MCQ1 Mark·Choose one option
Key ↓
Which of the following best distinguishes IRR from CAGR?
1. AIRR assumes a constant growth rate; CAGR accounts for variable cash flows
2. BIRR considers the timing and size of intermediate cash flows; CAGR does not
3. CCAGR is used for multiple cash inflows; IRR is only for a single lump-sum
4. DCAGR includes taxes and inflation; IRR does not
Q4MCQ1 Mark·Choose one option
Key ↓
Arun receives the following cash flows from a project: Initial investment of ₹1,00,000, and returns of ₹30,000, ₹40,000, and ₹50,000 over 3 years. Which is the right method, should Arun use to evaluate if the project is financially viable?
1. ACAGR
2. BPayback Period
3. CIRR
4. DSimple Interest
Q5MCQ1 Mark·Choose one option
Key ↓
Arrange the following asset classes in order of increasing potential return and expected risk (from lowest to highest): 1. Cash 2. Fixed Income / Debt 3. Property 4. Equity Choose the correct option:
1. A1 - 2 - 3 - 4
2. B3 - 2 - 1 - 4
3. C4 - 3 - 2 - 1
4. D3 - 4 - 2 - 1
Q6MCQ1 Mark·Choose one option
Key ↓
Which of the following financial instruments are generally permissible investments for mutual fund schemes across global markets? 1. Equity securities (stocks) 2. Gold Exchange Traded Funds (ETFs) 3. Government bonds and treasury bills 4. Corporate bonds and 5. Debentures Select the correct option using the code below:
1. A1, 2, 3 and 5 only
2. B1, 3 and 4 only
3. C2, 4 and 5 only
4. D1, 2, 3, 4 and 5

Official Key

Master Answer Key & Explanations

Official answer keys from IIT Madras BS past papers. Click any question to review.

Reveal Key

Q1B

Q2C

Q3B

Q4C

Q5A

Q6D

Questions and answer keys are reproduced from the official IIT Madras BS papers. Topics and repeated question types are BTechi’s own grouping. BTechi is not affiliated with IIT Madras.